'Tis the season to be greedy! Fannie Mae (FNM) CEO, Michael Williams, and Freddie Mac (FRE) CEO, Charles Halderman, will each receive $6 million in total compensation for 2009!
How would you like to work for a company that will guarantee every single loss you have. The U.S. Treasury said that they would absorb all losses for Fannie and Freddie for the next three years, if necessary.
Let's flashback to the the bailout days of 2008. U.S. Treasury Secretary Geithner announces that Fannie and Freddie will be each be bailed out to the tune of $200 billion. The two companies were seized by the government in September 2008 and put under the conservatorship of the regulator.
Fannie and Freddie have been sinking deeper in 2009. So what does the government do? Why it just guarantees more losses going into 2012.
So, now you decide to become CEO of Freddie and Fannie. No matter how much you lose, not to worry. The government will pick up the tab. You then beg on bended knee for a measly $6 million! And guess what? The regulator says: "Why sure, we can do that." And you fall into the biggest sweetheart deal of the century.
By any measure of common sense, something is wrong with this picture. We have 17 million unemployed and here's these two guys each pulling $6 million from the government. Why didn't the regulator force them to follow the CEO of Morgan Stanley (MS)? CEO John Mack took no bonus this year!
Let's close this holiday with required reading for all regulators, Treasury Secretary Geithner and Ben Bernanke. It is A Christmas Carol by Charles Dickens!
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Reader Comments (Page 1 of 1)
12-26-2009 @ 6:38PM
jason said...
Absolutely disgusting and unreal this country is falling apart where is oversight grrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr !!!6 mil damn im going to get me a job there this is horrible
12-27-2009 @ 10:01AM
Big Daddy Fossil said...
Haldeman and his wife currently live in Haverford, Pennsylvania. They have three children: Matthew, Charlotte, and Catherine. Matthew is a graduate of Williams College (2002) and is a second year student at Harvard Business School. Charlotte is a graduate of Dartmouth College (2003) and Penn Law School (2008). Catherine graduated from Dartmouth College in 2008.
12-28-2009 @ 7:20AM
Dan Barnett said...
Come on Connie,
You know that a significant part of the compensation comes in the form of incentives and production bonuses. Did you intend to stir up the comments such as "marc's" above that I take to be a clear threat of violent action?
You confuse compensation in paragraph one and bonus in paragraph 6. Equally you equate private sector bonuses for the past two years (where the CEOs hardly did a stellar job) with bonuses for the future (where the performance is yet to be determined). If the current executives return FRE & FNM to profitability and the stock price triples or quadruples, do you mean to tell us that you don't think they'd be worth a bonus?
Further some of the compensation is in the form of stock and stock options. If the stock price remains less than a gallon of gas; the value is significantly less.
I understand you enjoy asking questions that stir up debate. But you owe it to all of us, your readers, not to appeal to the lowest common denominator, and to make arguments fairly.
12-30-2009 @ 2:44PM
Yehuda Hamer said...
Everybody deserves a real raise for doing something non mediocre
1-05-2010 @ 11:09PM
Randy Robinson said...
Connie,,Great Story.... Great writing!!!!
I've been on the Net since 95... I actually helped Al Gorp invent the net.
sorry ..
But, I dont run across many writers with your style. You certainly report it the way it really is.
Every once in a while you find a writer that puts out 1 or 2 great stories, then they VANISH!! like somebody goes to their office and tips over their desk and deletes them from the planet. I hope you stick around for a while. We need more people to write the facts as you do. I am so sick of reading stories that have no content as if the writer is scared to hurt any feelings.,,, so they say nothing...
Im a fan!!!!
1-05-2010 @ 8:41PM
Unemployed said...
This is total BULL SH-T!!!!!! We keep giving these to big to fail companies more money along with Fannie Mae and Freddie Macs 6 million bonuses + and yet the Unemployed Homeowners can not get any help with their mortgages till jobs can be found!!!!!!!!!!!! They won't modify you when you are Unemployed, they won't give you a 3 to 6 month break till you can find a job, they won't help you in the least anyway or how and yet we the TAXPAYERS have to keep giving all our money to these companies! This is TOTALLY WRONG!
Where is the help for all the Unemployed Homeowners out here struggling every day trying to find jobs just so they can keep their homes? All these programs for modifications, HAMP etc. do not address the Unemployed homeowners who by the way lost their jobs to no fault of their own!
Mr. President when will you do the right thing and help those of us that want to work but are loosing our homes?